Oil prices could spike higher without investment

LONDON (AFP)

“In the longer term, the world will need more oil production capacity, if a repeat of the recent damaging high-price period is to be avoided,” CGES said in its latest report.

“Although the falling demand for oil is creating additional spare production capacity, as OPEC cuts its output, which is down by around 3.0 million barrels a day since September 2008, this picture could change when oil demand growth returns.”

The worldwide economic slump has slashed energy demand, sending oil prices plunging from their record peaks of above 147 dollars per barrel that were hit in July 2008.

Agence France-Presse